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forum thread Posted by Moooshe • Mar 16, 2023
forum thread Posted by Moooshe • Mar 16, 2023

Forbright Bank is offering 5.25% APY on a 12-month CD. 3-month penalty for early withdrawal.

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FDIC insured up to 250k. 3 months penalty for early withdrawal. This is the highest offer I could find.

https://www.forbrightbank.com/con...nline-cds/
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FDIC insured up to 250k. 3 months penalty for early withdrawal. This is the highest offer I could find.

https://www.forbrightbank.com/con...nline-cds/

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30 Comments

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Mar 19, 2023
527 Posts
Joined May 2007
Mar 19, 2023
drivenZ
Mar 19, 2023
527 Posts
Quote from pranrasvij :
check out fidelity brokered CDs. I got 5.45 for 6 mnths at schwab.....
is that fdic insured though? I thought brokered cd's were not insured. Which may be fine but that may be the reason for the premium.
Mar 19, 2023
641 Posts
Joined Oct 2006
Mar 19, 2023
birch97
Mar 19, 2023
641 Posts
Quote from mohicans :
I'd rather get a 3 year multi year guaranteed annuity from athene or Lincoln Financial or some insurer that's backed by a massive financial institution which won't collapse and collect 5.5% principal protected coupon which is basically a certificate of deposit from an insurer versus a CD from one of these fly by day no name banks after what's happened during the past week
You might want to check out Lincoln Financial's current state of its shaky finances & downgrades
Mar 19, 2023
641 Posts
Joined Oct 2006
Mar 19, 2023
birch97
Mar 19, 2023
641 Posts
Quote from drivenZ :
this is the most ridiculous thing. You do remember 2008 right? WaMu, Lehman, etc? What about Signature Bank and now CS?

All banks nowadays have ESG components and diversity officers and all that good stuff. Goldman, JPM, all of them. If it wasnt good for business they wouldnt do it.
There's a huge difference between a bank offering things like ESG options to customers that are seeking such & a bank whose entire focus is in that arena.
Mar 19, 2023
527 Posts
Joined May 2007
Mar 19, 2023
drivenZ
Mar 19, 2023
527 Posts
Quote from birch97 :
There's a huge difference between a bank offering things like ESG options to customers that are seeking such & a bank whose entire focus is in that arena.
Not when its FDIC insured. Unless you're dropping $250k+ in there.
1
1
Mar 20, 2023
519 Posts
Joined Feb 2011
Mar 20, 2023
goredsox415
Mar 20, 2023
519 Posts
Quote from hhh_1234 :
Isn't the 5.45 for 6 months at schwab marked as Primary CD?

I read the investor doesn't get the interest for primary CDs, instead it goes to the bank/brokerage.
inflation is at least 15% in the past year. no bank is paying more than that.
1
Mar 20, 2023
228 Posts
Joined Aug 2004
Mar 20, 2023
Klahn
Mar 20, 2023
228 Posts
Given that it looks like the Fed is going to raise interest rates by at least 3/4 of a percent at least twice again this year, I have to consider 5% or even 6% long-term (= anything over 6 months) as a sucker bet.

https://www.treasurydirect.gov/au...a-results/

T-bills can be purchased from most banks with an investment department for a minimal commission (0.1% at my bank) or directly from the government without commission. I find it worthwhile to go through a bank because they do all the rate lookup and the paperwork for me, with consolidated statements at the end of the year.

T-bills are exempt from Federal income tax. In a higher tax bracket this can raise the return by a quarter of a percent or more.

The investment length is anywhere between four weeks and 52 weeks in (about) monthly increments.

The short term T-bill rates are now actually higher than the long term rates. And despite my personal opinion of government by deficit, they are one of the safest securities available.

Anyway, that's where I'm keeping my money - in T-bills. And it's not just for the rich -- the minimum investment through Treasury Direct is $100 with increments of $100.

https://www.treasurydirect.gov/ma...ury-bills/
1
Mar 20, 2023
14 Posts
Joined Jun 2019
Mar 20, 2023
HandsomeT
Mar 20, 2023
14 Posts
Quote from drivenZ :
is that fdic insured though? I thought brokered cd's were not insured. Which may be fine but that may be the reason for the premium.
All brokered CDs purchased through your brokerage firm Fidelity, eTrade, etc. will have FDIC coverage. When you log into your online brokerage and go to buy a CD you will see that they all carry FDIC coverage.

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Mar 20, 2023
149 Posts
Joined Nov 2006
Mar 20, 2023
rabmozzer
Mar 20, 2023
149 Posts
Quote from pranrasvij :
check out fidelity brokered CDs. I got 5.45 for 6 mnths at schwab.....
Is it FDIC insured?
Mar 21, 2023
464 Posts
Joined Sep 2017
Mar 21, 2023
pranrasvij
Mar 21, 2023
464 Posts
Quote from rabmozzer :
Is it FDIC insured?
yes, all are (fidelity shows clearly), rates are coming down a bit... treasuries and CDs both
Mar 21, 2023
464 Posts
Joined Sep 2017
Mar 21, 2023
pranrasvij
Mar 21, 2023
464 Posts
Quote from loki_l77 :
Can u pls share link. I couldn't find similar rate.
you have to be o fidelity customer to see it . login and then go to fixed rate offerings. the primary CDs just mean you are buying from bank instead of marketplace (secondary)
Mar 22, 2023
248 Posts
Joined Jul 2017
Mar 22, 2023
Yoksel
Mar 22, 2023
248 Posts
Quote from Klahn :

T-bills are exempt from Federal income tax. In a higher tax bracket this can raise the return by a quarter of a percent or more.

Now that would be nice, wouldn't it. Reality is much more boring - they're exempt from State income tax.

Munis are Fed tax exempt but that's clearly reflected in their rates, not to mention the risks.
Mar 25, 2023
3 Posts
Joined Dec 2020
Mar 25, 2023
WittyThread657
Mar 25, 2023
3 Posts
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